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Future Tech I Business Analyst Professional (CBA-PRO) I Board Member I WTM Speaker & Mentor I BizDev & Strategic Partnerships I Google Developers Group Chapter I Founder Innovation Social Club I Google ML-AI expert

Tel Aviv rises to 4th place in the annual ranking of the global technological innovation ecosystem 2024 by Startup Genome Tel Aviv climbed 1 place to fourth place in an annual report that ranked the most attractive innovation ecosystem in the world for startups & innovation. Los Angeles is 4th place as well & California's Silicon Valley is in 1st place. New York & London share second place. The report ranks the top 40 tech startup hubs in more than 300 ecosystems worldwide, collecting data on 4.5 million startups. A higher ecosystem ranking increases the chances of global success for early-stage startups. The top five global ecosystems are worth $4.4 trillion – based on exits and startup valuations – or 54% of the total of the top 40 hubs. The remaining 35 ecosystems are worth a combined $4 trillion. Tel Aviv's technological ecosystem was valued at $235 billion, compared to a global average of $29.4 billion. For the annual ranking, the research company measured five success factors: 1. Performance, which takes into account the number and growth of exits and how many successful startups; 2. Access to financing and its quality; 3. Market reach, or the ability to tap into global markets; 4. How easy it is to recruit top talent; 5. Knowledge, a measure of the impact of advertising and patents. Israeli startups are facing dwindling financial pathways amid a fundraising drought following political unrest in the first nine months of 2023 and the outbreak of war with the Hamas terrorist group on October 7. During the ongoing fighting, the Israeli army recruited hundreds of thousands of reservists, some of whom remain in uniform. Venture capital funding raised by Israeli startups in 2023 dropped by 58% year-on-year and amounted to $7.3 billion, returning to levels last seen in 2018, and after record years in 2020 to 2022. Entrepreneurs from Tel Aviv face unprecedented challenges, yet continue to build impeccable technologies and fast-growing businesses that successfully penetrate global markets." The 2024 Startup Ecosystem report, published annually since 2012, noted that Tel Aviv led all five top ecosystems except Silicon Valley in the second part of 2023, with seven such transactions. The largest exit was Oddity, an online consumer technology that debuted on the Nasdaq stock market, valued at over $2 billion. The acquisition of the Tel Aviv startup Run:ai for AI workload management by Nvidia announced in April was cited as a "positive signal" in the report. Tel Aviv startups also receive reinforcements from a "strong" network of venture capital funds, the report states. In January, the VC company Cardumen Capital, which invests in early-stage software and hardware startups, raised $120 million for its second fund. In July 2023 , VC TLV Partners announced its fifth fund worth $250 million, and in August, early-stage venture capital fund Symbol closed its seed fund, raising a total of $50 million.

  • 2GLOBAL INSIGHTS & RANKINGS

Copyright © 2024 Startup Genome LLC (startupgenome.com). All Rights Reserved. Version 1 (June 10, 2024). Do not reproduce nor distribute the report by email, website download,
or any other electronic or physical means without the prior written authorization of Startup Genome. This material has been prepared for general informational purposes only and is not
intended as professional advice. This report cannot be offered for download on any website other than startupgenome.com

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